According to investment services provider Hargreaves Lansdown, its clients have been busy buying UK shares.
And many of the firm’s customers are retail investors like me. Perhaps they’re on to some decent investment ideas I can research with a view to buying some shares myself.
5 top UK shares to research now
Most popular among the firm’s clients last week was Scottish Mortgage Investment Trust, which has nothing to do with mortgages. Investment trusts can be a neat way to gain broad diversification across markets at low cost. Meanwhile, The share price of this trust has been rising steadily. But it strikes me as being well worth further research. The trust targets a global investment universe and spreads money between many sectors. But the share picks tend to be highly rated growth stocks, so the level of risk is higher than some other collective funds.
Second is the communications specialist and FTSE 100 constituent Vodafone. The share price has been trending lower since early 2018, moving the potential investment back into the realms of decent value. Before the fall, Vodafone looked expensive to me.
And it seems Hargreaves Lansdown’s clients agree. They’ve been buying up Vodafone shares in February. City analysts expect an uplift in earnings above 30% in the trading year to March 2022. And with the share price near 133p, the forward-looking dividend yield is knocking on the door of 6%. But the investment could fall flat if those expectations aren’t met.
Meanwhile, I wholeheartedly agree with the third-most-popular share bought via the HL platform. It’s pharmaceutical giant GlaxoSmithKline. The share price has been falling for most of 2020.
Uncertainty ahead
I reckon nervousness regarding the upcoming demerger of its consumer healthcare business could be contributing to negative investor sentiment. And lacklustre growth in earnings won’t be helping either. But with the stock near 1,273p, I think it’s well worth running the calculator over. Indeed, the sector has defensive characteristics making it a bountiful hunting ground for long-term investments.
Hargreaves Lansdown clients are also going for the low-looking valuation available with investments and insurance company Aviva. There’s a lot of cyclicality in the sector, but the shares have been roaring up from their coronavirus lows of last spring. However, there’s still the possibility that a downturn could lead to a lacklustre investment outcome for shareholders.
But I’m bullish on the outlook for the UK and other economies coming out of the crisis and beyond. So I think investors’ focus on the value on offer with Aviva could be astute. I certainly think the stock is worth my further research.
Finally, the number-five-most-bought share by HL clients has been National Grid. I’ve long been a fan of the company’s unique regulated monopoly position in the UK’s energy system. And that works well with its regulated energy business in the US.
The sector is defensive and cash-generating. I think National Grid looks well-placed to keep on delivering shareholder dividends in the years ahead. With the share price near 864p, the yield is just below 6%. But perhaps the biggest risk is the possibility of regulatory changes impacting the firm’s ability to pay dividends.
